May 2021 Pierce County Market Overview

Here are the latest numbers and information about our Pierce County market.

Today I’m sharing a Pierce County real estate market update for May 2021. This market is on

fire, and I continue to say that every month because I’m still blown away by what we’re seeing.

At 0:35 in the video above, you can see a graph that shows our five-year pricing trends. We just

hit an all-time record: The median home price has reached $500,000. We’ve seen a 20% increase in

home values in the last year, while historically, values increase around 5% per year. In last month’s market update, I said we were consistently seeing homes spending an average of six

days on market and that I didn’t see how it could get any lower than that. However, we’ve now dropped

to an average of five days on the market, so homes are moving extremely quickly.

"Our market is in a feeding frenzy; people are buying more homes than ever."

At 1:55 in the video, you can see a chart that illustrates pending sales in the last five years. Pending

sales are those that have gone under contract but haven’t closed yet. The number of pending sales

has risen 41.61% year over year. At 2:30, you can see a graph showing active listings versus the number of sales in the last five years.

We currently have a very low number of homes available for sale; that number has declined 45%

compared to this same time last year. At the same time, the number of homes selling is much higher

than the number of homes for sale. The number of homes sold has climbed 46% over the last year.

That means our market is in a feeding frenzy; people are buying more homes than ever. A seller’s market is when there is fewer than six months’ worth of homes on the market and home

values are trending upward. When we have six to seven months’ worth of homes, we’re in a neutral

market, and home prices will only appreciate with inflation. If we have seven months or more of homes

on the market, it’s a buyer’s market, and home prices will depreciate. Knowing all this, we’re in more of

a seller’s market than we’ve ever been before. We have only half a month's worth of homes for sale right now. If no more homes were to come

onto the market, we’d sell out in just 15 days. The number of homes for sale has just been decreasing

and decreasing. This is the hottest market I’ve ever seen, by a long shot.

If you’re considering selling, don’t hesitate to reach out to me. I’d be glad to be a resource and educate

you about timing, what you need to know, preparation, and more. Feel free to contact me via phone or

email anytime if you have questions about the market or real estate in general. I’d love to speak with

you.

What Did the First Quarter in Tacoma Real Estate Look Like?

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Today, I’ll go over what happened in the Tacoma real estate market during the first quarter of 2016.

We have had a hot real estate market so far this year. Right now, Pierce County is the fastest growing county in Washington State. There were so many multiple offers in King County that King County’s median sales price is actually double the median sales price in Pierce County. Buyers have begun to figure out that they can save money by buying in Pierce County, and that’s why the market has grown tremendously.

During the first quarter of 2015, a 3-bedroom, 2-bathroom, 2,000 square foot home sold for an average price of $255,000 and spent about 42 days on the market. This year, that same size house is selling for $312,500 and only spending 22 days on the market. That sales price has gone up by 18.4%, and homes are spending almost half the time on the market as they were last year. That’s incredible!
 

That’s great news for sellers, but buyers still have a great opportunity to build wealth by owning a home instead of paying those expensive rental rates. If you have any questions, give me a call or send me an email. I would be happy to help you!

What Do Rising Interest Rates Mean for the Pierce County Market?

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What's going on in the Pierce County Marketplace? This is a question we often receive toward the end of the year, so today we want to give you a quick rundown of recent trends.

In December of 2014, the median sale price was $235,000. This year, that price has increased 6% in our county, up to $249,000. This is on a pretty large scale; if we look at individual neighborhoods, on the other hand, the change in median sale price varies dramatically. Values vary depending on the area of the county you live in!

A good way to figure out how the market is doing is to take a look at the inventory, which is based on the principles of supply and demand. When there is zero to four months of inventory, we are in a market that is favorable for sellers. When there is five to six months worth of homes on the market, home prices vary with inflation and the market is neutral. If there is over seven months of inventory on the market, buyer's have the advantage and we often see declining home values. Last year at this time, we saw an inventory of 4.7 months. Now, that number has dropped to 2.5 months! This means we're in a very strong seller's market, and values are on the rise as a result of the high demand!

Days on market is another good marketplace indicator to take a look at. Last year at this time, the average days on market sat at 70 days. This year, we saw that number drop all the way down to 55 days. If you're looking to sell your home quickly, now is a fantastic time to do so!

Although all these current stats are favorable for sellers, buyers need not panic. Interest rates are incredibly low, which means lower monthly payments for you! If you wait, and interest rates increase by just 1%, your monthly payments will increase by 10%, which is obviously something you want to avoid.

Whether you're a buyer or a seller, we're here to help you make the most of current Pierce County market conditions. Give us a call or shoot us an email at any time, we would love to hear from you!